FinTech: Assets, A New Product From Wise, Lets You Spend From Your Stocks Portfolio
Wise is a UK fintech. Users can invest money in global stocks and then spend from the portfolio if required.
Wise (LON: WISE), the UK payments fintech previously known as TransferWise, has taken its first steps into investing solutions. Its Assets product allows users to invest in stocks but also have access to liquidity via a spending limit of up to 97% of the value of the portfolio. (CNBC)
How it works
Wise customers can now invest in the 1,557 global stocks represented in BlackRock’s iShares World Equity Index Fund. The fund holds the biggest listed companies in the world, including Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL).
Using their Wise debit card, customers can immediately spend up to 97% of their portfolio for emergent needs. They thus have the best of both worlds – stocks exposure as well as liquidity. They can also send money abroad in various currencies from the Assets account.
The company holds a 3% reserve on the portfolio to protect against large fluctuations that could land the customer’s account in minus territory. Customers pay an annualized 0.55% service fee and a 0.15% fund fee on the value of a user’s assets, which is taken monthly in arrears.
“Holding money in various currencies can be hard to manage efficiently,” said Kristo Käärmann, CEO and co-founder to CNBC. “Assets is seeking to solve that problem, by providing an opportunity for customers to earn a return on their money with us, in a host of different currencies, all in one place.”
Wise obtained the green signal from UK regulators last year to launch investment products.
The Assets product launched into a huge surge in retail investors’ interest in the stock market.
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